Clearing Firm
Infrastructure
A clearing firm settles trades and handles margin requirements between exchanges, brokers, and end-users.
A clearing firm settles trades, handles margin requirements, and ensures the proper transfer of funds and securities between exchanges, brokers, and end-users. For prop traders on simulated accounts, the clearing relationship is between the firm and its broker — the trader does not interact directly.
For live-capital prop firms, the choice of clearing firm affects execution quality, margin treatment, and which assets can be traded. Major clearing firms in futures include Wedbush, R.J. O''Brien, StoneX, and Marex.
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